President Donald Trump’s sweeping new bill for taxes, dubbed the “One Big Beautiful Bill”, is barreling toward a crucial House vote after clearing the Rules Committee with an 8-4 majority late Wednesday.
The bill, over 1,000 pages long and packed with late-night edits, is designed to make Trump’s 2017 tax cuts permanent, expand deductions, and deliver a fresh batch of controversial reforms ahead of the 2026 elections.
But not everyone is buying it.
This high-stakes legislation is exposing deep rifts inside the Republican Party, between hardline fiscal hawks, moderate members, and MAGA loyalists. House Speaker Mike Johnson worked overtime to win over skeptics, adding 42 pages of amendments to pacify different factions before the final floor vote, expected early Thursday.
Among the key changes:
- SALT deduction cap increased fourfold, from $10,000 to $40,000 for households earning under $500,000, a sweetener for moderates.
- Medicaid work requirements moved up to 2026, a win for conservatives.
- Tip income tax repeal and permanent 2017 cuts remain central planks, pure Trump campaign gold.
Deficit Fears and Political Games
The bill has no Democratic support and could barely scrape through on a party-line vote. Conservative Texas Rep. Chip Roy, a vocal fiscal watchdog, didn’t even vote in committee, casting uncertainty over whether he’ll support it on the floor. Some Republicans are balking at the deficit implications, with markets already reacting. On Wednesday, the 30-year Treasury yield spiked to 5.09%, reflecting Wall Street’s fear of ballooning federal debt.
“The president reiterated how critical it is for the country to pass the One Big Beautiful Bill as quickly as possible,” said White House press secretary Karoline Leavitt, confirming that Trump met with key House Freedom Caucus members earlier that day to twist arms.
CBO Says It Favors the Wealthy
A Congressional Budget Office (CBO) analysis didn’t help calm critics. According to the CBO, the bill would reduce resources for low-income households while significantly increasing benefits for high-income earners. That’s red meat for Democrats and budget hawks who see this as yet another Trump-era giveaway to the rich under the guise of economic growth.
Still, Trump’s base loves it. Repealing taxes on tipped income is likely to land well with service industry workers, and making tax cuts permanent has long been a GOP rallying cry.
Senate Showdown Looms
Even if the bill passes the House, the Senate remains a battlefield. The legislation will be considered under budget reconciliation rules, meaning only 51 votes are needed to advance. But several Senate Republicans have already demanded major rewrites. That puts Donald Trump’s overhaul of taxes on shaky ground heading into summer.
For now, though, all eyes are on Thursday’s vote. If successful, it would be a major legislative win for Trump as he seeks to reshape the tax landscape yet again, and a defining battle in the 2025 political arena.
